Romania: Buy recommendation for Nuclearelectrica’s shares

, SEE Energy News

Nuclearelectrica is Romanian electricity producer which operates country’s sole nuclear power plant Cernavoda.

Romanian brokerage house Goldring anticipates that the shares of Nuclearelectrica will increase by another 16 % in the next 12 months. Goldring estimates a target price of 3.95 euros and has issued a buy recommendation for Nuclearelectrica shares, which are currently traded around 3.4 euros.

Nuclearelectrica has been among the top 10 most traded stocks on the Romanian market in the last 12 months, and the share price has increased by 17.5 % compared to a 9 % decline for the Romanian blue-chip index (BET) in the same period. In addition to the share price increase, Nuclearelectrica also offered among the highest dividend yields on the local market.

In September, Nuclearelectrica’s shares were also included in FTSE Russel’s Global All Cap indices as Romania was promoted to emerging market status. Nuclearelectrica recorded a net profit in the amount of 70.8 million euros in the first half of 2020, which is 18.1 % more compared to the same period last year. The company’s operating profit increased by 4.4 % year-on-year to 137.8 million euros in the first six months of the year, mostly due to a 9.4 % annual drop in operating expenses. Nuclearelectrica generated about 5.49 million MWh of electricity in January-June 2020 period, which is 11.8 % more compared to the same period in 2019. Electricity sales contributed 240 million euros in revenues in the first half of the year, down 2 % year-on-year.